#RiskRewardRatio
Understanding the risk-to-reward ratio is the foundation of success in trading. When entering a trade, you must ask yourself: Is the expected return worth the risk? For example, if you are risking $100, the expected return should be at least $200 with a ratio of 1:2. A smart trader always plans and calculates before taking a risk. Using the ratio helps you minimize losses and increase profits in the long run. Do not enter a trade without calculating the risk and reward, because randomness in trading leads to losses. Be smart and plan well!
